Covid and Recovery in Asia
Sunday, Jan. 9, 2022 3:45 PM - 5:45 PM (EST)
- Chair: Michael G. Plummer, Johns Hopkins University
Covid-19, Agglomeration Economies, and Firm Recovery: Evidence from Bangladesh
AbstractAgglomeration economies may help firms to cope with the pandemic-induced crisis and speed their recovery. To test this hypothesis, we analyze data from a sample of 216 micro, small and medium enterprises from 16 industrial estates in Bangladesh. Data spanning the period of hard lock-down (March-May 2020) and subsequent periods of more limited lock-down and opening up are merged with a broader sample from 2017 that encompasses the same firms. We explore the role of the following two factors in weathering and recovering from the crisis: (i) access to local value chains; and (ii) proximity to business hubs at district or sub-district levels. The findings suggest that agglomeration economies (mainly local market access indicators) have provided benefits to firms during the pandemic. Such agglomeration benefits in the context of the pandemic provide insight into cluster-based industrialization in developing countries that aim to exploit local inputs and business potentials.
Mitigate Damages and Support Growth through E-government - A preliminary examination of Economies in the Global Pandemic
AbstractIn this study, we approach the question in the context of severe global pandemic that yet to be brought under control both globally and regionally. Meanwhile, another global trend is the growing prevalence of internet and internet-based contactless activities, especially during the pandemic. Combining the two trends, we examine whether, and how adequately constructed e-governments have helped to contain the spread of the deadly virus and facilitated economic recovery. By examining closer the components of e-government index and the types of policy responses to the pandemic, as well as their impacts on the economic growth, we find that countries with better E-Government development, government tend to be more responsive, with stronger stringency, health and economic supporting policies. But the higher public participation makes the government response to the pandemic less effective. Our results indicate that the stringency policy helped to protect the economic growth while the investment in E-Government, the health and economic policies dragged the economic growth slower in the pandemic. However, our estimations also show that in the long-run, the expansion of online service provision and public participation in E-Government can promote the economic growth.
Covid Impact and Macroeconomic Policy in Asia
AbstractThe macroeconomic story of Covid policy begins with efforts to control disease transmission. Some Asian economies have succeeded in containing the spread with effective testing and carefully targeted quarantine at low cost to economic activity (e.g., Taiwan) while others have imposed extensive lockdowns for a heavy toll (e.g., the Philippines). On top of the impairments to health and restrictions on mobility, most Asian economies have suffered export declines including large losses in tourism for some (e.g., Thailand). The adverse economic shocks have been countered with fiscal and monetary policies under constraints on policy space. The fiscal response must take into account existing government debt levels and interest rates. The monetary response is to some extent induced by pressure on interest rates caused by the fiscal response. US policy also shapes the monetary policy environment through its effects on global capital flows and exchange rates. The full story will take years to play out and be fully analyzed. The next element to be absorbed into the calculus will be vaccination progress. At this stage the analytical strategy involves graphical methods to frame the diversity of macro policy conditions and approaches. Fourteen economies are compared: Bangladesh; Hong Kong; India; Indonesia; Japan; Korea; Malaysia; Pakistan; Philippines; Taiwan; Thailand; Singapore; Vietnam.
- O5 - Economywide Country Studies
- P5 - Comparative Economic Systems